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https://github.com/annaanastasy/consumer-behavior-clustering

Segmented customer data into clusters using KMeans to uncover actionable insights into consumer behavior for targeted marketing strategies.
https://github.com/annaanastasy/consumer-behavior-clustering

cluster-analysis clustering data-science exploratory-data-analysis kmeans-clustering machine-learning-algorithms python unsupervised-learning

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Segmented customer data into clusters using KMeans to uncover actionable insights into consumer behavior for targeted marketing strategies.

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# Consumer Behavior Analysis: Uncovering Insights with KMeans Clustering

This project explores customer segmentation using the KMeans clustering algorithm to identify distinct behavioral patterns, enabling businesses to design targeted marketing and retention strategies.

## Table of Contents
1. [Project Overview](#project-overview)
2. [Dataset](#dataset)
3. [Exploratory Data Analysis (EDA)](#exploratory-data-analysis-eda)
4. [Clustering Analysis](#clustering-analysis)
5. [Insights and Recommendations](#insights-and-recommendations)
6. [How to Run the Notebook](#how-to-run-the-notebook)

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## 1. Project Overview

Understanding customer behavior is crucial for creating personalized marketing strategies. This project utilizes the KMeans clustering algorithm to segment customers into meaningful groups based on behavioral data.

### Key Objectives:
- Analyze customer data to identify distinct clusters.
- Provide actionable insights into customer behavior for improved marketing strategies.

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## 2. Dataset

The dataset contains customer data including demographics, purchase history, and other relevant metrics.

### Key Information:
- **Source:** [Kaggle Dataset](https://www.kaggle.com/datasets/imakash3011/customer-personality-analysis)
- **Size:** Several columns representing various behavioral and demographic attributes.
- **Target Analysis:** Unsupervised clustering (no target variable).

---

## 3. Exploratory Data Analysis (EDA)

- Addressed missing values and normalized the data for better clustering results.
- Explored patterns in features such as spending habits and demographics.

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## 4. Clustering Analysis

### Methodology:
- Applied KMeans clustering to segment customers based on their similarities.
- Determined the optimal number of clusters using the Elbow Method and Silhouette Score.

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## 5. Insights and Recommendations

### Key Results:
- Customers were segmented into **three distinct clusters** representing unique behavioral traits.
- Each cluster provides valuable insights for designing targeted marketing campaigns and retention strategies.

---

## 6. How to Run the Notebook

### Prerequisites
- Python 3.8 or higher
- Libraries: `numpy`, `pandas`, `matplotlib`, `seaborn`, `scikit-learn`.

### Setup
1. Install required libraries:
```bash
pip install numpy pandas matplotlib seaborn scikit-learn